By June Yang
Latest statistics shows that up to the end of May, 3460 thousand low-cost flats have been started building, which covers 46.4% of the whole year target, while 2060 thousand flats have been completed, meeting 41.25% of the whole year target.
Comparing the figure of last year, 34% of the goal was started at the end of last May, Yang Xuhong, secretary of Shanghai Eeju House Research Institute, told the reporter of ChinaBusiness News that completion of low-cost flats benefit both from progressive adjustment and the policy to "stablize economic growth".
Since low-cost house building can drive up related industries and thus revive economic growth, government would like to get it started soon. Yang said.
Accelerating of low-cost house construction is also a way to hedge against the impact of the slowing down property market, Chen Jie, executive director of Housing Policy Research Center of Fudan University said.
China's city Xi'an emphasized low-cost house building in its newly published policy to "stablize economic growth". "Low-cost flats projects started in 2011 must be completed before the end of this year." and "1.07 million low-cost flats building must all get started before the end of this June."
Effects of low-cost house building also have showed up in Shanghai last year. In the 217 billion fixed assets investment, low-cost house construction accounted for 47.9 billion, increased by 42.9% year-on-year.
However, the latest news reported that in order to meet the target, Wuhan government cheated by taking old apartments as low-cost house projects.
Statistical fraud is not the only problem, Chen Jie said,"Low-cost house projects actually imposed heavy burden on local government. Whether they have the right to raise houses through multiple channels, whether those houses have to be newly built are still controversial.